OFS Credit Company Provides March 2024 Net Asset Value Update
- None.
- Future net asset value (NAV) estimates may differ from the current estimate due to various factors like interest rates, geopolitical events, and market volatility, potentially impacting the company's financial condition and results of operations.
- The company's NAV estimate for March 31, 2024, is unaudited and subject to change based on future determinations, potentially leading to material impacts on net investment income and the underlying value of investments.
Insights
The recent net asset value estimate provided by OFS Credit Company serves as an interim indicator of the company's financial condition, specifically concerning its investments in collateralized loan obligation securities. The range of $7.42 to $7.52 per share reflects the company's assessment of the fair value of their portfolio as of March 2024. This figure is particularly noteworthy for investors as it hints at potential valuation changes in the short term. However, the absence of quarter-end financial closing procedures suggests that this estimate may not fully encapsulate the company's financial health.
Investors should also consider the macroeconomic factors highlighted by the company, such as interest and inflation rates, geopolitical conflicts and market volatility. These elements can significantly affect the performance of CLOs and, consequently, OFS Credit's NAV. Given the company's candidness about the potential material impact of these events, a degree of caution is warranted. The disclaimer regarding the unaudited nature of this estimate further emphasizes the preliminary status of the data. The lack of assurance from their auditing firm, KPMG LLP, leaves room for future financial revelations that could materially alter investor perceptions.
In the context of OFS Credit's NAV announcement, it's critical to dissect the numerous risk factors provided. The mention of elevated interest and inflation rates, international conflicts and systemic banking instability outlines a gamut of risks that could adversely affect CLO equity and debt securities. Such factors may not only impact the fair value of the portfolio but also the underlying financial condition of the individual portfolio investments. As these securities are tied to corporate loans, any economic downturn or increased default rates could diminish the portfolio's value and the company's net investment income.
Moreover, the potential for a U.S. government shutdown or service interruptions could introduce substantial volatility, affecting liquidity and market sentiment. For stakeholders, this means there could be significant short-term NAV fluctuations, necessitating a more comprehensive risk assessment and strategic response plan to offset any potential negative impacts on investment returns. The nuanced understanding of these risk factors and their possible interplay, is important for maintaining portfolio resilience in the face of uncertainties.
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Management’s unaudited estimate of the range of our NAV per share of our common stock as of March 31, 2024 is between
$7.42 $7.52
Our financial condition, including the fair value of our portfolio investments, and results of operations may be materially impacted after March 31, 2024 by circumstances and events that are not yet known. To the extent our portfolio investments are adversely impacted by elevated interest and inflation rates, the ongoing war between
The preliminary financial data included in this press release has been prepared by, and is the responsibility of, OFS Credit’s management. KPMG LLP has not audited, reviewed, compiled, or applied agreed-upon procedures with respect to the preliminary financial data. Accordingly, KPMG LLP does not express an opinion or any other form of assurance with respect thereto.
About OFS Credit Company, Inc.
OFS Credit is a non-diversified, externally managed closed-end management investment company. The Company’s investment objective is to generate current income, with a secondary objective to generate capital appreciation primarily through investment in CLO debt and subordinated securities. The Company's investment activities are managed by OFS Capital Management, LLC, an investment adviser registered under the Investment Advisers Act of 19401, as amended, and headquartered in
Forward-Looking Statements
Statements in this press release regarding management's future expectations, beliefs, intentions, goals, strategies, plans or prospects may constitute forward-looking statements. Forward-looking statements can be identified by terminology such as “anticipate”, “believe”, “could”, “could increase the likelihood”, “estimate”, “expect”, “intend”, “is planned”, “may”, “should”, “will”, “will enable”, “would be expected”, “look forward”, “may provide”, “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in documents that may be filed by OFS Credit from time to time with the Securities and Exchange Commission, as well as elevated interest and inflation rates, the ongoing war between
1 Registration does not imply a certain level of skill or training
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INVESTOR RELATIONS:
OFS Credit Company, Inc.
Steve Altebrando, 646-652-8473
investorrelations@ofscreditcompany.com
MEDIA RELATIONS:
Bill Mendel
212-397-1030
bill@mendelcommunications.com
Source: OFS Credit Company, Inc.
FAQ
What is the net asset value (NAV) estimate provided by OFS Credit Company for March 31, 2024?
What factors may impact future NAV estimates according to the press release?
Who prepared the preliminary financial data mentioned in the press release?
